Apple To Shut Down iTunes?
Aside from organizing music for your iPod, iTunes has proven that buying songs from an online store doesn’t have to be a serious cash drain. At 99 cents per song, tracks are a bargain, plus it gives people the chance to purchase only the titles they want to listen to. It’s a great alternative over getting an entire album just to listen to a few tunes.
Apparently, some people aren’t too happy with it. Music publishers in the U.S. have asked the Copyright Royalty Board to increase royalties paid from 9 to 15 cents per song. Predictably, Apple isn’t agreeing with that.
“If the [iTunes music store] was forced to absorb any increase in the… royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss — which is no alternative at all,” wrote Apple iTunes vice president Eddy Cue in a statement filed with the board last year, according to Fortune. “Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”
Pardon the long quote, but there you have it. Frankly, I like the honesty here. Apple is here to make money, and at 99 cents, people are happy to give it to them. Now that outside forces are seeking to touch that formula, Apple is taking a stand and is threatening to shut down iTunes. It’s a drastic measure, but when you have to prove a point, you’ve got to be ready to back it up. Head over to the source for more, including how the 99-cent price is distributed between Apple and publishers.
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